Fashion Setter makes one type of womens blouse, produced in jobs to fill each customer order. These blouses are supplied in boxes of six. The customers are various department stores and Fashion Setter sews the label of each store onto the blouses. During November, Fashion Setter worked on three orders. The job cost records disclosed the following data: Job No. Boxes in job Total materials used (metres) Total hours worked AB 2,000 48,200 5,960 CD 3,400 80,880 10,260 MN 2,400 57,650 5,780 The following additional information is available: Fashion Setter purchased 190,000 metres of material during November at a cost of $212,800. Direct labour during November amounted to $330,000. According to payroll records, production employees were paid $15 per hour. There was no work in process on 1 November. During November, job AB and CD were completed. All material was issued for job MN, which was 80 percent complete as to direct labour. The standard costs for a box of 6 blouses are as follows: Direct material 24 metres @ $1.10 $26.40 Direct labour 3 hours @ $14.70 $44.10 Manufacturing overhead 3 hours @ $12.00 $36.00 Instructions: 1. Prepare a schedule calculating the standard cost of jobs AN, CD and MN for November. 2. Calculate the following variances for November: a. Direct material price variance b. Direct material quantity variance for each job in total c. Direct labour efficiency variance for each job and in total d. Direct labour rate variance for each job and in total Indicate whether each variance is favourable or unfavourable. 3. Prepare journal entries to record each of the following events: a. Purchase of material b. Incurrence of direct labour cost and direct labour variances for November c. Addition of direct material to work in process inventory, and direct material variances for November 4. Discuss possible causes for each of the variances that you calculated under requirement 2. Consider each variance separately. Also consider possible interactions between variances. (lfs)